USD/JPY Forex Signal - 13 September 2017

13 September 2017 7:35:32 AM

Yesterday’s signals were not triggered, as there was no bearish price action at 109.85. 

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.

Short Trade 1

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 110.94.
  • Put the stop loss 1 pip above the local swing high.
  • Move the stop loss to break even once the trade is 20 pips in profit.
  • Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 109.85 or 109.54.
  • Put the stop loss 1 pip below the local swing low.
  • Move the stop loss to break even once the trade is 20 pips in profit.
  • Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

USD/JPY Analysis

This pair has seen a very significant development, with the price making a strong and fairly impulsive move up against the long-term bearish trend, breaking two resistance levels and breaking the lower of the long-term bearish trend lines shown in the chart below. The long-term bearish trend is almost dead, everything technically now depends upon that upper trend line. The handle at 110.00 is very psychologically significant too, so if the price can stay above that, it will be another sign that the bulls are getting back in charge in a meaningful way.

USDJPY

There is nothing due today concerning the JPY. Regarding the USD, there will be a release of PPI data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment. Learn more from Adam in his free lessons at FX Academy.

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